A Consumer Proposal or Assignment in Bankruptcy represents a fresh start. In most cases, this requires a fresh start with a new bank as well. In our experience we have found that the administrative pain is well worth the effort to protect your income and prevent your monthly budget from being sorely disrupted.
After you file you’ll need to avoid:
This usually involves:
You do not need to tell your new or current bank why you are switching accounts.
You do not require a large deposit to open a new account. In fact most banks do not require any deposit at all.
If you hold any unregistered investments at your current bank such as Tax Free Savings (TFSA), Educational Savings (RESPs), or other unregistered investments we strongly recommend moving those accounts from your old to your new bank before filing your Consumer Proposal or Bankruptcy.
Registered investments such as RRSPs, RRIFs, LIFs, and pensions do not need to urgently be transferred as they are exempt from seizure. However, individuals often find it most convenient to have all of their banking and investment relationships with the same institution and eventually choose to transfer their investments from their old bank to their new bank. Please note that registered investments should be transferred directly from one institution to the other and not withdrawn to avoid any income tax consequences. If you hold registered investments we suggest discussing your options with your new bank.
If you have any questions, don’t hesitate to contact our office at (416) 246-7771 or by email.